| As an important microscopic entity in a country or region,the realization of sustainable development of the company is an important part of the realization of the sustainable development of the entire economy and society.Achieving the sustainable development of enterprises is a stepping stone in the process of achieving the sustainable development goals,and can provide a solid foundation and guarantee for the sustainable development of society and economy.After being affected by the China-US trade war and the outbreak of the COVID-19,how companies can achieve stability and sustainable development has become a key issue facing companies.As executives are the main decision makers of the company,there are inevitably personal traces of executives in the daily operations of the company.Senior management often determines the business model,development strategy,and the extent to which the company can develop.However,according to the principal-agent theory,the interests of executives and business owners are not always the same,and executives may harm the interests of the enterprise and the owners of the enterprise by expanding their own interests.If business owners want to achieve sustainable and long-term business development,they need to find a reasonable and effective method to solve the problem of inconsistent goals.Salary incentives provide the possibility to solve such problems.As an informal system with the most profound impact on Chinese society,Confucian culture will shape the thinking and values of executives from a deeper level,thereby supplementing and enhancing the role of the formal system of executive compensation incentives.It will make the executive compensation incentive system more effective.Therefore,studying the relationship between "executive compensation,Confucian culture and corporate sustainable development" is of great significance for improving corporate sustainable development capabilities.This article first uses principal-agent theory,incentive theory,high-level echelon theory and branding theory,as well as the research results of previous scholars to analyze the relationship between executive compensation and the sustainable development of the company,and the moderating effect of Confucian culture on the relationship between executive compensation and the sustainable development of the company.On this basis,the research hypothesis of this article is proposed;Secondly,a regression model based on double fixed effects is constructed.The data of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2020 are selected to empirically test the impact of executive compensation on the sustainable development of the company and the relationship between executive compensation and the sustainable development of the company under different intensities of Confucian cultural influence;At the same time,in the further analysis,according to the property rights of the group,the relationship between the state-owned and non-state-owned executive compensation,Confucian culture and sustainable development of enterprises is considered.According to the different intensity of foreign culture impact,the experimental samples were grouped to explore the different effects of Confucian culture in different regions.The research found that:（1）There is a significant positive correlation between executive compensation and corporate sustainable development,that is,executive compensation can enhance corporate sustainable development capabilities.（2）Confucian culture can positively regulate the relationship between executive compensation and corporate sustainable development,that is,adding Confucian cultural incentives can make executive compensation incentives more effective in enhancing corporate sustainable development capabilities.（3）The executive compensation incentives of state-owned enterprises are better than non-state-owned enterprises in enhancing the sustainable development ability of enterprises,and the Confucian culture complements and encourages executive compensation in non-state-owned enterprises better than state-owned enterprises.（4）In areas with relatively low degree of opening to the outside world and little intensity of foreign culture impact,the moderating effect of Confucian culture is better than that of the regions with higher degree of opening to the outside world and greater intensity of foreign culture impact.Based on the above conclusions,this article recommends:（1）Senior executives of listed enterprises should be enhanced to understand the sustainable development ability of enterprises.Corporate executives should focus on the long-term development of the enterprise,timely find the potential factors affecting the sustainable development of the enterprise,and put forward effective measures targeted.（2）Optimize the incentive mechanism for executive compensation.Business owners should formulate appropriate executive compensation incentives so that executives can receive compensation that matches their abilities and performance.（3）Attach importance to the influence of traditional Confucian culture,combined with explicit and implicit incentives.Enterprises should pay attention to the influence of Confucian culture,correctly understand the connotation of Confucian culture,give play to the invisible incentive function of the informal system of Confucian culture,and effectively supplement and improve the formal system of executive compensation incentives.（4）At the macro level,we should enhance cultural confidence and give full play to the positive role of traditional culture.As the leader of the inheritance and promotion of traditional culture,the government should make full use of its public power to create a good cultural atmosphere,enhance the recognition of the value of Confucian culture,and eliminate the people’s discrimination and prejudice against Confucian culture. |
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